Consumer Protection Act Article 17: The agreement between the supplier and consumer Part 6

In our previous article, we discussed the agreement between the supplier and consumer in regards to prohibited transactions, agreements, terms and conditions.

In this article, we shall continue to discuss the agreement between the supplier and consumer but in relation to changes, deferrals, waivers and cooling off.

Changes, deferrals and waivers:

If a change, deferral or waiver occurs in accordance with the Act it does not create a new agreement but the original agreement will continue to apply with such change, deferral or waiver taking effect.

However, if the parties agree to a substitution of goods or services after delivery then the transaction applies to the substituted goods or services rather than the goods or services originally stipulated. In this instance, the supplier must supply an amended sales record.

Cancellation, expiry and renewal:

When a consumer signs up for a fixed term agreement, for example, a 24-month gym contract, the Act now makes it possible for the termination of the agreement subject to compliance with the Act. However, kindly note that the consumer may be charged an early termination penalty. While the Act does stipulate that the early termination penalty must be a reasonable charge there are currently no standards by which this is measured.

Some fixed-term agreements make provision that the consumer, subject to being informed by the supplier of an impending termination, officially terminates the agreement or the same will continue on a month-to-month basis. It is therefore advisable that consumers familiarise themselves with the termination provisions of their agreement.

Cooling off:

Should a consumer enter into an agreement as a result of direct marketing the consumer has the right to rescind the agreement within 5 days. All that is required of the consumer is that notice be given of the choice to rescind. If goods have been received then they must be returned by the consumer. The consumer doesn't need to provide a reason for exercising this right and the supplier may not impose a penalty on the consumer. Furthermore, should the consumer have made payment for goods received this must be refunded within 15 days. However, if the consumer has used the goods certain costs may be recovered by the supplier.

***Kindly note that the contents of this article are intended for information purposes only and do not constitute legal advice. Consult your attorney.

In our next article, we will continue to discuss the agreement between the supplier and consumer but in relation to the right to return goods and cancellation of reservation, booking or order.